Euro Area Inflation Rate Confirmed At 4-Year High Of 2%


Consumer prices in the Euro Area increased 2 percent year-on-year in February of 2017, up from 1.8 percent in January and in line with preliminary figures. It is the highest inflation rate since January of 2013, due to a rise in energy prices.

The largest upward impacts came from fuels for transport (prices rose 16.7 percent), vegetables (16.2 percent) and heating oil (30 percent). In contrast, biggest downward pressure came from telecommunication (-1.1 percent), garments (-0.1 percent) and gas (-1.3 percent). 

By country, the highest annual rates were recorded in Estonia (3.4 percent from 2.8 percent in February), Belgium (3.3 percent from 3.1 percent), Latvia (3.2 percent from 2.9 percent) and Lithuania (3.2 percent from 2.5 percent). Inflation also accelerated in Germany (2.2 percent from 1.9 percent) and Italy (1.6 percent from 1 percent) but slowed in France (1.4 percent from 1.6 percent). 

Excluding energy, food, alcohol and tobacco, consumer prices increased 0.9 percent, the same as in the previous two months. Excluding energy only, prices went up at a faster 1.2 percent (1.1 percent in January).

The monthly inflation rate was 0.4 percent, compared to -0.8 percent in January.

Considering the European Union, prices rose 0.3 percent on the month (-0.6 percent in January) and 1.9 percent on the year (1.7 percent in January).

Euro Area Inflation Rate Confirmed At 4-Year High Of 2%


Eurostat | Joana Taborda | joana.taborda@tradingeconomics.com
3/16/2017 10:28:13 AM